RDIF, EBRD and CapMan Russia to co-invest in leading Russian IT outsourcing provider MAYKOR

Press release, 26.08.2013

Moscow, 26 August 2013, - A consortium comprised of the Russian Direct Investment Fund (RDIF), the European Bank for Reconstruction and Development (EBRD) and the CapMan Russia II fund, has completed an investment in MAYKOR, the leading Russian IT outsourcing and service provider.

The three partners will invest up to USD 100 million in MAYKOR that will allow the group to grow its market share. The RDIF will invest USD 50 million – with the EBRD and the CapMan Russia II fund contributing the remaining part. The new funds will support MAYKOR’s growth strategy to increase the scale of its operations and its service portfolio diversification inside Russia.

MAYKOR has a leading market position in Russia and is specially focused on the comprehensive one-stop-shop servicing of IT equipment, facility systems and business applications. The group was founded in 2010 and has since evolved into the largest outsourcing service provider in Russia. MAYKOR serves over 1000 large and medium geographically-distributed clients across various industries, with 83 regional branches, over 400 service subdivisions and more than 3000 certified engineers employed across Russia.

“This is RDIF’s first investment in the fast-growing Russian IT services sector and its potential has attracted a group of highly credible foreign co-investors. In the last year the sector has grown by approximately 15% and we expect this growth rate to increase. MAYKOR’s diversified geographical presence, coupled with the expert support on offer from our top tier consortium partners CapMan and EBRD means the company is well placed to extend its position as a market leader.”

Heikki Westerlund, CEO and Senior Partner, CapMan Group, said:

“We see great potential in the outsourcing industry and have first-hand experience in this space through several portfolio companies in the Nordics. The Russian outsourcing market consists of small service providers with limited regional coverage. In contrast, MAYKOR enjoys significant economies of scale that allow the company to remain highly competitive across Russia.”

Natasha Khanjenkova, the EBRD’s Managing Director for Russia, said:

“This equity investment endorses MAYKOR’s business model and will support the company’s expansion in the regions of Russia.”

Sergey Sulgin, President of MAYKOR, said:

“This investment will enable MAYKOR to continue to lead the process of industry consolidation through our selective M&A strategy. Integrating newly acquired service providers and increasing our cross-selling opportunities will further boost organic growth and improve our capability to support our customers. Moreover, the investors’ entry will help MAYKOR to improve corporate governance according to international standards.”

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Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Further information at www.rdif.ru.

CapMan Russia is a leading Russian private equity manager focused on small to mid-cap Russian growth companies. The team has made 40 investments and 28 exits since 1996. The latest fund held a first closing of ?97 million in 2013. The team includes 12 people in Moscow. CapMan Russia is part of CapMan Group, a leading private equity firms in the Nordic countries and Russia, with assets under management of ?3.3 billion. CapMan has five key investment partnerships - CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate - each of which has its own dedicated investment team and funds. Altogether, CapMan employs 105 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. www.capman.com

The EBRD, owned by 64 countries and two intergovernmental institutions, supports the development of market economies and democracies. In 2013, the EBRD committed up to EUR 50 million for the launch of the CapMan Russia II fund which invests in small and medium-sized companies. Follow EBRD on the web, Facebook and Twitter.

MAYKOR Group (Service Holding Company LLC) is the largest group of companies on the Russian service and outsourcing market and specializes in comprehensive servicing of IT equipment, building utility systems, and business applications. MAYKOR Group's mission is to ensure efficient operation and development of the infrastructure of large and medium-sized businesses throughout the entire country. With its own network of 83 branches and 400 local divisions covering the entire territory of Russia, MAYKOR Group provides services based on the "one-stop shopping" principle. The company has over 3,000 certified on-staff engineers. MAYKOR Group has a customer base of over 1000 companies, including some of the largest geographically distributed companies in all industries. MAYKOR Group has a one-of-a-kind competency center, advanced specialty training programs for its technical experts, a well-developed logistics infrastructure, an automated service monitoring and control system, and a quality management system compliant with international ISO standards. MAYKOR Group's website — www.maykor.com